Almost £22,000 has been added to the average house price since May 2020.
House prices in the UK are expected to continue rising despite hitting record levels in May, according to Halifax.
Halifax, one of the UK’s biggest mortgage lenders, revealed that house prices rose 1.3% in May, taking the average sale price to a record high of £261,743. As the UK stamp duty holiday draws to a close, many businesses are looking to secure deals.
– Advertisement –
Since May 2020, the average house price has increased by almost £22,000 as England’s lockdown restrictions were gradually eased.
This was an annual increase of 9.5%, the highest growth rate in the past seven years.
The Halifax findings are in line with last week’s Nationwide report, which suggested UK house prices rose 10.9% annually over the same period.
Halifax Managing Director Russell Galley said: “The government’s stamp duty holiday continues to increase market activity in the lead-up to the traditionally busy summer period, with potential buyers looking to maximize their availability in advance. “They are racing to complete their purchases in time to take advantage of tax breaks.” The deadline is June, after which there will be a gradual return to normal rates. ”
In addition to changes in the average price of housing, there has also been a shift in the types of housing people want to move into during the pandemic. The surge in working from home has increased interest in larger homes with gardens outside of urban centers.
“These trends, coupled with growing confidence that economic activity will recover more quickly as restrictions continue to ease, are likely to support house prices for some time to come, especially given the continued shortage of properties for sale. is high,” Galley said.
Sam Mitchell, CEO of online estate agency Strike, said: “In contrast to the British weather, the UK property market was red hot in May with house prices showing no signs of cooling down.
“While the looming stamp duty holiday deadline is sending markets into a frenzy, there are other factors at play as well.As restrictions are lifted and the vaccination rollout progresses, a sense of normalcy returns. Meanwhile, 95% mortgage offers have increased significantly, helping more first-time buyers enter the market.
“Many will wonder whether this level of demand will continue once the stamp duty holiday starts to wind down, but it is important to remember that the UK still faces a huge supply and demand imbalance problem, especially when it comes to outdoor For homes with space and in rural areas, prices will continue to rise as demand outstrips demand due to a lack of new stock.Additionally, the government will do something to support the market once the stamp duty holiday ends. I might be planning something else.”
